Bringing SaaS Apps to the Masses

A new trend is emerging that promises to help SMBs take full advantage of cloud computing -- the proliferation of easy-to-use marketplaces focusing on business-oriented SaaS apps. App store hosting companies are working with major retailers like Staples, which offers its own App Center, as well as with nonprofits that support small businesses, such as state and local chambers of commerce.

One of the age-old challenges that has plagued the software industry, like many others,
is how vendors can reach small- and mid-sized businesses with their software products.

Although today's Software as a Service model eliminates many of the distribution
challenges of the past, it hasn't overcome the obstacles associated with selling cloud-
based applications to SMBs. However, new SaaS marketplace hosts may be able to break
through these barriers.

Many industry observers have mistakenly believed that SMBs have been in the forefront
of SaaS adoption because SMBs were never able to afford traditional, on-premises
enterprise applications. The truth is that SMBs have been slow to try and buy SaaS apps
because they are less familiar with the SaaS apps available to them and are more risk-averse
about experimenting with new apps.

App Store Acceptance

I've written often in this space about the growing importance of the third-party channels
to market for today's SaaS vendors.

Old and new channel partners are becoming
increasingly essential to educate potential customers about the business benefits of SaaS,
help clients select and deploy the right SaaS solutions, and optimize the return on their
SaaS investments.

Online SaaS marketplaces have also held promise because of the increasing familiarity
among "prosumers" with the Apple iStore, Google Play and Amazon's Appstore for finding
and utilizing apps for their smartphones and tablets to meet personal needs.

Many
corporate end-users and executives want the same ease of use when it comes to acquiring
business apps.

Powering Staples' App Center

Companies like
Jamcracker and
Parallels have had success promoting the virtues
of leveraging a marketplace platform to telcos and hosting companies for years.
Now companies like
AppDirect and
SaaS Markets are empowering a wider array of organizations to deploy SaaS marketplaces.

AppDirect is powering Staples' new
App Center, which offers SMBs an online portal
where they can purchase and manage their apps using a customizable administrative
console.

This is a significant initiative, because Staples is the world's largest office
products company and second largest Internet retailer. The App Center offers SaaS
applications from Google, Carbonite, Mozy, Box, Symantec, McAfee, and many other
leading vendors.

"Staples' vision is to provide small businesses with all the products they need to succeed," the company says, "including the best offerings from the evolving cloud computing market."

Partnering With Nonprofits

While AppDirect has been targeting major service providers and retailers to host its app
store platform, SaaS Markets, another business app store provider, has been focusing its
efforts on partnering with nonprofit organizations that serve SMBs.

In the past year,
SaaS Markets has established 24 app stores with organizations like the state chambers
of commerce in Washington and Montana, as well as local chambers in Greater Richmond,
Va.; Pocatello, Idaho; Auburn Area, Wash.; and Park City, Utah.

SaaS Markets'
app stores also extend across Europe and offer over 1,300 SaaS applications, along with
support services to help SMBs select, deploy and use their apps.

The many and varied companies and organizations hosting app stores are giving
SaaS greater credibility in the eyes of SMB decision-makers. They are also making it
easier for SMBs to obtain SaaS solutions and utilize them effectively.